Ratings and Rankings:
Solving Human Problems
for Profit

R. Paul Herman
CEO + Founder
HIP Investor
Do Good, Make Money, or Both?


            HIP™:
Do Good    Human         Make $$$
           Impact
           + Profit
...
Individuals Want to Be HIP
 EMPLOYEES        CUSTOMERS          INVESTORS

 77% want to      65% want to       66% see “do...
Solving Four Core Human Problems
Leads to Sustainable, Profitable Growth




              ©2007 All rights reserved   4
How HIP Practices Deliver Profit
Five Core Areas      Leading Examples                  Leading Firms
1. Vision           ...
HIP Companies Are Outperforming




                                        GS Sustain
                                   ...
Always Ask: “HOW HIP IS IT?”
     • What human problem
         does this solve?

   • How do you design for both
      Hu...
CIGARETTES: “HOW HIP IS IT?”
What human problem
                          • Reduce stress – emotionally
  does this solve?...
BIG OIL: “HOW HIP IS IT?”
What human problem
                          • Mobility – vehicle fuel
  does this solve?       ...
Fast Company magazine’s
1st Annual HIP Scorecard




         ©2007 All rights reserved   10
Investing in
 green energy


Health & safety
for ALL workers


 Low diversity,
   not open


                  11
How Will You Be HIP?




           ©2007 All rights reserved   12
Do Good, Make Money, or Both?


            HIP™:
Do Good    Human         Make $$$
           Impact
           + Profit
...
Sustainable and Socially Responsible Investing - Ratings and Rankings
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Sustainable and Socially Responsible Investing - Ratings and Rankings

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Presentation on socially responsible investing, funds, screening, and taking social and environmental considerations into financial investments. By Paul Herman.

Learn more about Sustainable Business & Design at: http://sustainablelifemedia.com

Published in: Economy & Finance
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Sustainable and Socially Responsible Investing - Ratings and Rankings

  1. 1. Ratings and Rankings: Solving Human Problems for Profit R. Paul Herman CEO + Founder HIP Investor
  2. 2. Do Good, Make Money, or Both? HIP™: Do Good Human Make $$$ Impact + Profit 2
  3. 3. Individuals Want to Be HIP EMPLOYEES CUSTOMERS INVESTORS 77% want to 65% want to 66% see “doing “do good” at “do good” by good” as work BUYING positive indicator 84% of exec’s 49% DON’T say “doing good buy if not good 19% REFUSE AND maximum to invest if firms profit” is 38% tell a not “doing POSSIBLE friend good” 3
  4. 4. Solving Four Core Human Problems Leads to Sustainable, Profitable Growth ©2007 All rights reserved 4
  5. 5. How HIP Practices Deliver Profit Five Core Areas Leading Examples Leading Firms 1. Vision 50% by 2015 AMD Zero by 2020 Interface 2. Measures 10-point balanced scorecard PG&E, HP, McD’s 3. Financials $10B, $20B, $50B revenue GE $400mm cost savings Interface +2% more; 40% less energy Liberty Property Solar tax credits Walgreens 4. Accountability Board committees; GE, Chevron Performance targets for Intel Corp. VPs, managers, staff Herman Miller 5. Decision Making Approval / integration of United Tech’s new product designs Sun Microsystems 5 HIP management disciplines drive Human Impact ©2007 All rights reserved 5
  6. 6. HIP Companies Are Outperforming GS Sustain outperforms +25% beyond MSCI World in 22 months ©2007 All rights reserved 6
  7. 7. Always Ask: “HOW HIP IS IT?” • What human problem does this solve? • How do you design for both Human Impact + Profit? • What management practices are in place to be HIP? 7
  8. 8. CIGARETTES: “HOW HIP IS IT?” What human problem • Reduce stress – emotionally does this solve? • Lose weight – physically • Socialize – new friends How does it deliver • Communities of interest (weight loss) Human Impact + • Short-burst physical exercise (gyms) Profit? • Online “venting” (see: the Internet) • Vision: “Long life, not short tokes” What HIP management • Accountability: Life expectancy goals practices are in place? • Decision-making: Kids as approvers? 8
  9. 9. BIG OIL: “HOW HIP IS IT?” What human problem • Mobility – vehicle fuel does this solve? • Productivity – lights, action! • Safe delivery – health care How does it deliver • Nature-based fuels (sugar) Human Impact + • Renewable energy (wind) Profit? • Eco-plastics (green chemistry) What HIP management • Vision: “100% renewable energy” practices are in place? • Accountability: GreenHouse Gas (GHG) targets for staff • Decision-making: “Go/No Go” criteria 9
  10. 10. Fast Company magazine’s 1st Annual HIP Scorecard ©2007 All rights reserved 10
  11. 11. Investing in green energy Health & safety for ALL workers Low diversity, not open 11
  12. 12. How Will You Be HIP? ©2007 All rights reserved 12
  13. 13. Do Good, Make Money, or Both? HIP™: Do Good Human Make $$$ Impact + Profit 13

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